CHAPTER 1

THE PROBLEM AND ITS BACKGROUND

This chapter presents the Background of the Study, Statement of the

Problem, Significance of the Study, Scope and Limitation, Theoretical

Framework, Conceptual Framework and Definition of terms.

BACKGROUND OF THE STUDY

Financial literacy is the possession of the set of skills and knowledge that

allows an individual to make informed and effective decisions with all of their

financial resources. And one of the factors affecting the level of financial literacy

of a person is its spending behavior and habits. Financial satisfaction will be

attained when the spending behavior is in the most desirable way. This is

generally supported by the previous studies indicating that the best practice

behavior in finance increases financial satisfaction (Xiao et al., 2014).

Financial literacy is one of the aspects that need to be concern by an

individual in order to manage his or her finance effectively and many research in

this area have been done to show that financial knowledge has significant effects

on financial decision making. According to Mouna and Jarboui, 2015, the lack of

financial literacy can drive to poor financial behavior in gathering and digesting all

important financial information and thus, leads to inappropriate financial

decisions and achieve less efficient wealth allocation accordingly. The insufficient

financial knowledge also may affect people’s health physically, economically and

psychologically because of the difficulties in their financial resources (Jorgensen

and Savla, 2010).

 According to Banko Sentral ng Pilipinas (BSP, 2013), saving is the

discipline of regularly setting aside a portion of one’s income for future use, to

achieve financial goals, or manage emergencies. According to Farlex Financial

Dictionary (2012), debt management is any strategy that helps a debtor to repay

or otherwise handle their debt better. According to Rodriguez (2015), Budgeting

is the process of expressing the predicted costs and resources for a planned

course of action over a specified time period. These factors will be used to

measure the level of financial literacy of Grade 12 ABM students.

According to Pallipedia (2016), basic necessities is a term used by the

International Labour Organization (ILO) and other United Nations agencies for

the basic goods and services necessary for a minimum standard of living.

According to Handel (2014), leisure is any time not occupied by paid or unpaid

work, including personal chores and obligations. Leisure travel is one of the most

commonly listed interests of people, and it comes in all forms. According to

Christian Broadcasting Network (CBN), miscellaneous category of the budget is

everything not included in regular categories (housing, automobile, clothing, food,

or insurance). These are the factors that can be used to determine the spending

behavior of Grade 12 ABM students.

Investigating on level of financial literacy and financial behavior of

students would assess their ability to convert financial knowledge to personal

financial decisions. Alongside achieving this main objective, it also intends to

measure the level of financial literacy and spending behavior of ABM students in

San Jose Litex Senior High School.

 The researchers want to put solutions to these problems by identifying the

relationship of the financial literacy and spending behavior. Through this, the

researcher can identify if financial literacy affects the spending behavior of Grade

12 ABM students.

STATEMENT OF THE PROBLEM

This study aims to determine the relationship of financial literacy and

spending behavior of Grade 12 ABM students in San Jose Litex Senior High

School.

Specifically, this seek answers to the following questions:

1. What is the profile of the respondents in terms of:

a. Gender

b. Allowance

2. What is the level of financial literacy of Grade 12 ABM students in terms

of:

a. Savings

b. Managing debt

c. Budgeting

3. What is the spending behavior of Grade 12 ABM students in terms of:

a. Basic necessity

b. Leisure activities
 c. Miscellaneous

4. Is there a significant relationship between financial literacy and spending

behavior of Grade 12 ABM students in San Jose Litex Senior High

School?

Hypothesis:

There is no significant relationship between financial literacy and spending

behavior of Grade 12 ABM students in San Jose Litex Senior High School.

SIGNIFICANCE OF THE STUDY

This research seeks to address the goals and intentions of the following:

To students, this research will help them be aware of their financial

activities and the proper way of managing their financial resources.

To teachers, this study will be a guide to prepare students to have the

right attitude that should be utilized on handling their money.

To School Administrators, this research will help them think of programs

and seminars that should be conducted in able to improve student’s financial

literacy and the most desirable spending behavior.

To parents, this will help them guide their children to have an efficient

spending behavior and help them be financial literate.

To future researchers, this study would help them be aware and

knowledgeable about the relationship of financial literacy and spending behavior.

It can also be a help as a future reference for more studies in the future.
SCOPE AND DELIMITATIONS

This research includes the relationship of financial literacy and spending

behavior of Grade 12 ABM students of San Jose Litex Senior High School.

This research aims to get respondents from ABM Grade 12 at the San

Jose Litex Senior High School. Researchers need 100 respondents to become a

bridge to carry out research by intending to study them. Sampling to be used is

Random Sampling.

THEORETICAL FRAMEWORK

This is supported by Sabri and Juen (2014) who stated that financial

literacy has a direct relationship with spending behavior. As the people’s level of

financial literacy increases, they will make most desirable behavior in spending

and avoid having financial difficulties. Thus, financial literacy does give effects

towards the consumer’s spending behavior.

CONCEPTUAL FRAMEWORK

Independent Variable Dependent Variable

Financial Literacy Spending behavior

a. Savings a. Basic Necessities

b. Managing Debt b. Leisure Activities
c. Budgeting c. Miscellaneous Expenses

Figure 1. Research Paradigm

 Figure 1 shows the independent variable in the left side that indicates the

financial literacy in terms of savings, managing debt and budgeting. While the

right side is the dependent variable that is pointing out the spending behavior

which will be measured in terms of basic necessity, leisure activities and

miscellaneous. This describes that the financial literacy is the main point in

influencing the spending behavior.

DEFINITION OF TERMS

Financial Literacy - is the possession of set of skills and knowledge that

allows students to make informed and effective decisions with all of their financial

resources. In this study, financial literacy was measured in terms of students’

skills in savings, managing debt and budgeting.

Spending Behavior - the act of disbursing money in response to an

action, environment or person in the satisfaction of needs and wants. In this

study, it is measured in terms of basic necessities, leisure activities and

miscellaneous expenses.
 CHAPTER 2

REVIEW OF RELATED LITERATURE AND STUDIES

This chapter includes Local Literature, Foreign Literature, Local Studies,

Foreign Studies and Synthesis.

Local Literature

According to Maur (2015), financial literacy have various sources that

provide different definitions but have one thing in common – everything revolves

around money, knowledge and use.

According to Banko Sentral ng Pilipinas (BSP, 2013), saving is the

discipline of regularly setting aside a portion of one’s income for future use, to

achieve financial goals, or manage emergencies. Higher household savings,

when deposited in the formal financial system, often lead to higher economic

growth as savings are channelled to other productive uses. Savings is the money

that people set aside for future use to achieve financial goals or manage

emergencies.

According to Rodriguez (2015), a budget is a quantitative expression of a

plan for a defined period of time. It may include planned sales volume and

revenues, resource quantities, costs and expenses, assets, liabilities and cash

flows. Budgeting practices are heavily influenced by the organizations

management style and can vary considerably but the theory is common to all.

Given the relationship between budgets and planning, readers might also like to

refer the Planning and Forecasting topic gateway. Budgeting is the process of
expressing the predicted costs and resources for a planned course of action over

a specified time period. Budgets can be drawn of for business unit, departments,

products, teams or the entire organization. Another term for a budget is a

financial plan, but budgets can refer to non-cash resources, such as staff or time.

According to Villegas (2010), one of the two general types of wants is

basic wants which stay with someone from birth to death. These wants are

unending and make up the barest necessities that people need to survive like

food, shelter, and clothing.

Foreign Literature

According to Niwanthika (2016), saving refers to the process of setting

aside extra cash for future use. In another words savings is the share of income

not spent on current expenditures. And also savings are the dynamic condition

for the financial stability and economic growth of a country.

According to Farlex Financial Dictionary (2012), debt management is any

strategy that helps a debtor to repay or otherwise handle their debt better. Debt

management may involve working with creditors to restructure debt or helping

the debtor manage payments more effectively.

Budgeting helps all types of organization to plan and control their

operations, and to support their managerial strategies. A budget sets out the

benchmark against which performance will be measured. For example, this might

be the minimum profit and loss performance expected by senior management.

Performance against budget may be part of the organization's appraisal system

for individuals who are deemed accountable for such performance. Budgeting is

the activity of recording financial and / or non-financial elements into the budget

(Achim, 2009).

According to Pallipedia (2016), basic necessities is a term used by

the International Labour Organization (ILO) and other United Nations agencies

for the basic goods and services necessary for a minimum standard of living.

According to Handel (2014), leisure is any time not occupied by paid or

unpaid work, including personal chores and obligations. Leisure travel is one of

the most commonly listed interests of people, and it comes in all forms.

According to Christian Broadcasting Network (2019), miscellaneous

category of the budget is everything not included in regular categories (housing,

automobile, clothing, food, or insurance). It is one category that eats up a lot of

money in budgets, and most families can never remember where that money

spent.

Local Studies

According to the study of Sayao (2015) entitled “Factors that influence the

Financial Literacy of the BSA-FM Students in Cor Jesu College of Digos”,

financial literacy provides the necessary knowledge, skills and tools for

individuals to make informed financial decisions with confidence, to manage

personal wealth with efficiency and to increase financial competence to demand

for better financial services.

 According to the study of Buendicho (2012) entitled “A Descriptive

Research on Allowance and Budget of 2 nd Year Students of University of Santo

Tomas’ College of Fine Arts and Design”, students make budget plan every day

and not only make one, but also follow it.

Foreign Studies

According to the study of Tungsriwong, Pantuak and Temsawat (2016)

entitled “Household Accounting and Financial Planning in Dokkumtai, Thailand”,

budget is one of the financial planning which is aimed at planning by setting

goals and controls the plan so that the set target can be achieved.

One study entitled “Financial Literacy and its Consequences: Evidence

from Russia during the Financial Crisis”, found out that individuals with higher

levels of financial literacy are more likely to have a greater unspent income and

lower spending in which they will experience less negative income if they have

financial crisis that is caused by unexpected economic and income shocks

(Klapper et al., 2013)

According to the study of Root (2009) entitled “Finance and Development

Research Programme Working paper series”, debt management is an act of

trying to get one’s debt under control and become responsible for repaying

associated obligations. It can therefore be inferred that debt management is a

conscious measure taken by a debtor or agents hired on their behalf to reduce

the debt burden or strategize to eliminate the debt through acceptable payment

terms.
 According to the study of Cecchetti et al. (2011) entitled “The Real Effects

of debt bank for International Settlements”, a reasonable debt level improves

welfare and enhances growth but high level debts can lead to a decline in growth

of a firm.

According to the study of Khadka (2014) entitled “Effect of Consumer

Behavior Change Based on Maslow’s Need Hierarchal Theory”, from a business

perspective, the goal is to find a way to sell a product. When it comes to the

difficulty of convincing consumer to make a purchase, selling food is relatively

easy compared to other products. Everyone has to eat. There are several other

factors that are taken into consideration by the consumer when making

purchasing decision and the cost of purchase is one of the strongest determiners

at all levels of a decision.

According to the study of Shin and You (2013) entitled “Leisure Type,

Leisure Satisfaction and Adolescents’ Psychological Wellbeing”, leisure

satisfaction had longitudinal effects on their psychological wellbeing, with

increasing life satisfaction and decreasing stress.

According to the study of Taft et al. (2013) entitled “The Relation between

financial literacy, financial wellbeing and financial concerns”, high financial

literacy brings positive impact on individual’s ability that relate to finance in terms

of increasing savings, making purchasing decision correctly, having proper

investing, debt and credit management as well as provide understanding of the

real economic situation and his or her financial position reasonably.

 According to the study of Sabri and Juean (2014) entitled “The Influence

of Financial Literacy, Saving Behavior and Financial Management on Retirement

Confidence among women working in the Malaysian Public Sector”, financial

literacy has a direct relationship with spending behavior. As the people’s level of

financial literacy increases, they will make most desirable behavior in spending

and avoid having financial difficulties. Thus, financial literacy does give effects

towards the consumer’s spending behavior.

Synthesis

Financial literacy can be measure by savings, managing debt and

budgeting. Savings is the money that people set aside for future use to achieve

financial goals or manage emergencies. Debt management is an act of trying to

get one’s debt under control and become responsible for repaying associated

obligations. Budgeting is the process of expressing the predicted costs and

resources for a planned course of action over a specified time period.

Spending behavior is divided into three and these are basic necessities,

leisure activities and miscellaneous expenses. Basic necessities is a term used

for the basic goods and services necessary for a minimum standard of living.

Leisure is any time not occupied by paid or unpaid work, including personal

chores and obligations. Miscellaneous category of the budget is everything not

included in regular categories (housing, automobile, clothing, food, or insurance).

 CHAPTER 3

RESEARCH METHODOLOGY

This chapter includes the Research Design, Sampling Technique,

Research Instrument, Data Gathering Procedure and Statistical Treatment.

Research Design

The researchers used a Descriptive Correlational Design to determine the

relationship of financial literacy and spending behavior of Grade 12 ABM

Students in San Jose-Litex Senior High School. With the use of statistical

measures of correlation, the researchers will be able to find out whether if there

is a significant relationship between the financial literacy and spending behavior

of students or not.

The researchers used a Quantitative Research Method to enable

researchers to study social and cultural phenomena: observe feelings, though,

behaviors and the belief of the mass.

Sampling Technique

The researchers used a Simple Random Sampling Technique wherein

every item in the population has an even chance of being selected in the sample.

The chosen respondents are the Grade 12 ABM students of San Jose-Litex

Senior High School.

Research Instrument

The researchers used survey questionnaires as the main instrument in

collecting data. This survey questionnaire collects information about the level of

financial literacy and spending behavior of Grade 12 ABM students and the

relationship of this two variables.

The questionnaire has three parts. The first part asks for the demographic

profile of the respondents. The second part is asking for the level of financial

literacy in terms of savings, managing debt and budgeting. The third and last part

is looking for the spending behavior of the respondents.

Likert Scale Verbal Interpretation

4.45-5.00 Always
3.45-4.44 Often

2.45-3.44 Sometimes

1.45-2.44 Rarely
1.00-1.44 Never

Data Gathering Procedure

The researchers prepared a letter to ask permission to the principal to let

the chosen respondents answer the questionnaire. On the day of conducting the

survey, the researchers went to the room of each sections where the
questionnaires were given to the respondents and let them answer it. The data

were collected and the researchers gave an interpretation about it.

Statistical Treatment

The data to be gathered in the study will be subjected to the following

statistical tools:

 Frequency simply count the number of times that each variable occurs,

such as the number of males and females and the number of students

who chose their weekly allowance.

 Percentage will be employ to determine the percentage distribution of

related variables of the respondents. It is used in expressing the frequency

in percentage.

 Mean will be used to determine the central tendency of the data in the

questions. It is determined by adding all the data points in a population

and then dividing the total by the number of points. It is used in getting the

average answer of the respondents and items in every questions in

questionnaire.

 Pearson R will be used to measure the linear relationship between the

level of financial literacy and spending behavior of the respondents.

 CHAPTER 4
PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA

This chapter presents the data gathered, the results of statistical analysis

done and interpretation of data.

Profile of the Respondents

Table 1
Frequency and Percentage Distribution of the
Respondents in terms of Gender
GENDER FREQUENCY PERCENTAGE

Male 36 20.57%

Female 139 79.43%

Total 175 100%

The Table 1 presents the frequency and percentage distribution of the

profile in terms of gender. Based from the data gathered, 36 or 20.57% of the

respondents were male and 139 or 79.43% were female. In total, there are 175

Grade 12 ABM Students who participated in the study.

Allowance (Weekly) Frequency Percentage

Php 200 and below 37 21.14%

Php 201-300 41 23.43%

 Php 301-400 35 20%

Php 401 and above 62 35.43%

Total 175 100%
Table 2
Frequency and Percentage Distribution of the Respondents
in terms of Allowance (Weekly)

The Table 2 presents the frequency and percentage distribution of the

profile in terms of weekly allowance. Based from the data gathered, 37 or

21.14% of the respondents have an allowance of Php 200 and below, 41 or

23.43% have an allowance of Php 201-300, 35 or 20% have an allowance of Php

301-400 and 62 or 35.43% have an allowance of Php 401 and above.

Mean and Verbal Interpretation on the Level of Financial Literacy of Grade

12 ABM students in San Jose Litex Senior High School
Table 3
Mean and Verbal Interpretation on the Level of Financial Literacy of
Grade 12 ABM students in terms of Savings
Savings Mean Verbal
Interpretation
1. I can save my excess money from my 4.11 Often
allowance.
2. I put my excess money in piggy bank or 3.65 Often
wallet.
3. I give my savings to my friend, parents, 2.90 Sometimes
siblings or any other trusted person.
4. I save money for emergency purposes. 4.00 Often

Grand Mean 3.67 Often

The table 3 presents the mean and verbal interpretation on the level of

financial literacy in terms of savings. Based on the data gathered, the item with

the highest mean is the “I can save my excess money from my allowance” with a
mean of 4.11 and verbal interpretation of “Often”. “I save money for emergency

purposes” has a mean of 4 and verbal interpretation of “Often”. “I save money for

emergency purposes” has a mean of 3.65 and verbal interpretation of “Often”. “I

give my savings to my friend, parents, siblings or any other trusted person” has

the lowest mean of 2.90 and verbal interpretation of “Sometimes”. Savings has a

general mean of 3.67 and a verbal interpretation of “Often”.

The data above implies that Grade 12 ABM students of SJLSHS have the

ability to save money. The respondents often maximize their saving skills with the

allowance given to them.

Table 4
Mean and Verbal Interpretation on the Level of Financial Literacy of
Grade 12 ABM students in terms of Managing Debt
Managing debt Mean Verbal
Interpretation
1. I return the money I borrowed from my 4.23 Often
friends or classmates on time.
2. I borrow money only when needed. 4.46 Always
3. I only borrow a specific amount of 4.49 Always
money that I can afford to pay.
4. I rarely encounter having multiple 3.93 Often
debts.
Grand Mean 4.28 Often
The Table 4 presents the mean and verbal interpretation on the level of

financial literacy in terms of managing debt. Based on the data gathered, the item

with the highest mean is the “I only borrow a specific amount of money that I can

afford to pay” with a mean of 4.49 and verbal interpretation of “Always”. “I borrow

money only when needed” has a mean of 4.46 and verbal interpretation of

“Always”. “I return the money I borrowed from my friends or classmates on time”

has a mean of 4.23 and verbal interpretation of “Often”. “I rarely encounter

having multiple debts” has the lowest mean of 3.93 and verbal interpretation of

“Often”. Managing debt has a general mean of 4.28 and verbal interpretation of

“Often”.

This implies that the respondents can manage their debt properly. Always

borrowing a specific amount of money that they can afford to pay and borrowing

it only when needed shows a great debt management skills of the students.

Table 5
Mean and Verbal Interpretation on the Level of Financial Literacy of
Grade 12 ABM students in terms of Budgeting
Budgeting Mean Verbal
Interpretation
1. I do budget planning/preparation. 4.12 Often
2. I commit to the budget planned. 3.92 Often
3. I spend within my budget. 4.05 Often
4. I properly allocate my money in 4.34 Often
different expenses such as food,
transportation, etc.
Grand Mean 4.11 Often
The Table 5 presents the mean and verbal interpretation on the level of

financial literacy in terms of budgeting. Based on the data gathered, the item with

the highest mean is the “I properly allocate my money in different expenses such

as food, transportation, etc.” with a mean of 4.34 and verbal interpretation of

“Often. “I do budget planning/preparation” has a mean of 4.12 and verbal

interpretation of “Often”. “I spend within my budget” has a mean of 4.05 and

verbal interpretation of “Often”. “I commit to the budget planned” has a mean of

3.92 and verbal interpretation of “Often”. Budgeting has a general mean of 4.11

and verbal interpretation of “Often”.

It implicates that the respondents do budgets for themselves in order to

properly allocate their money in different expenses. They often do it and spend

their money according to the budget planned.

Table 6
Summary of Mean and Verbal Interpretation on the Level of Financial
Literacy of Grade 12 ABM students in San Jose Litex Senior
High School
Level of Financial Literacy General Mean Verbal
Interpretation
Savings 3.67 Often
Managing Debt 4.28 Often
Budgeting 4.11 Often
Overall Mean 4.02 Often
It can be seen from the table 6 that the respondents have the abilities to

save money, manage their debt and budget their allowance. Financial literacy is

an individual’s proficiency in saving money, managing debt and budgeting. Thus,

the students who have successfully showed the following factors are financially

literate.

Mean and Verbal Interpretation on the Spending Behavior of Grade 12 ABM

students in San Jose Litex Senior High School
Table 7
Mean and Verbal Interpretation on the Spending Behavior of
Grade 12 ABM students in terms of Basic Necessities
Basic Necessities Mean Verbal
Interpretation
1. I only buy food, water, etc., when 4.44 Often
necessary or needed.
 2. Before I buy food, water, etc., I think 4.11 Often
about its benefit first.
3. Before I buy food, water, etc., I 4.34 Often
compare the prices of the products first.
4. When I receive my allowance, I 4.01 Often
immediately separate a specific amount
of money for food, water, etc.
General Mean 4.23 Often
The table 7 presents the mean and verbal interpretation on the spending

behavior in terms of basic necessities. “I only buy food, water, etc., when

necessary or needed” has the highest mean of 4.44 and verbal interpretation of

“Often”. “Before I buy food, water, etc., I compare the prices of the products first”

has a mean of 4.34 and verbal interpretation of “Often”. “Before I buy food, water,

etc., I think about its benefit first” has a mean of 4.11 and verbal interpretation of

“Often”. “When I receive my allowance, I immediately separate a specific amount

of money for food, water, etc.” has the lowest mean of 4.01 and verbal

interpretation of “Often”. Basic necessities has a general mean of 4.23 and verbal

interpretation of “Often”.

These data implicates that the respondents behaved well in spending their

money when it comes to basic necessities such as food, water etc. They smartly

used their money in order to spend it properly in basic necessities expenses.

Table 8
Mean and Verbal Interpretation on the Spending Behavior of
Grade 12 ABM students in terms of Leisure Activities
Leisure Activities Mean Verbal
Interpretation
1. I only spend money on my hobbies 4.01 Often
when necessary or needed.
2. Before I spend my money on things 4.22 Often
that will make me happy, I think about its
 benefit first.
3. Before I spend money on my leisure 4.10 Often
activities, I compare the prices of the
commodities first.
4. When I receive my allowance, I 3.95 Often
immediately separate a specific amount
of money for my leisure activities.
General Mean 4.07 Often
The table 8 presents the mean and verbal interpretation on the spending

behavior in terms of leisure activities. The item with the highest mean is “Before I

spend my money on things that will make me happy, I think about its benefit first”

with a mean of 4.22 and verbal interpretation of “Often”. “Before I spend money

on my leisure activities, I compare the prices of the commodities first” has a

mean of 4.10 and verbal interpretation of “Often”. “I only spend money on my

hobbies when necessary or needed” has a mean of 4.01 and verbal

interpretation of “Often”. “When I receive my allowance, I immediately separate a

specific amount of money for my leisure activities” has the lowest mean of 4.95

and verbal interpretation of “Often”. Leisure activities has a general mean of 4.07

and verbal interpretation of “Often”.

This implicates that the respondents behaved properly in spending their

money on leisure activities or things that they want to do. They used their money

smartly in expenses incurred on their past time activities.

Table 9
Mean and Verbal Interpretation on the Spending Behavior of Grade 12
ABM students in terms of Miscellaneous Expense
Miscellaneous Expense Mean Verbal
Interpretation
1. I only spend money on miscellaneous 4.17 Often
when necessary or needed.
2. Before I spend my money on 4.13 Often
 miscellaneous expenses, I think about its
benefit first.
3. Before I spend money on 4.10 Often
miscellaneous expenses, I compare the
prices of it first.
4. When I receive my allowance, I 3.99 Often
immediately separate a specific amount
of money for miscellaneous expenses.
General Mean 4.10 Often
The table 9 presents the mean and verbal interpretation on the spending

behavior in terms of miscellaneous expenses. The item with the highest mean is

“I only spend money on miscellaneous when necessary or needed” with a mean

of 4.17 and verbal interpretation of “Often”. “Before I spend my money on

miscellaneous expenses, I think about its benefit first” has a mean of 4.13 and

verbal interpretation of “Often”. “Before I spend money on miscellaneous

expenses, I compare the prices of it first” has a mean of 4.10 and verbal

interpretation of “Often”. “When I receive my allowance, I immediately separate a

specific amount of money for miscellaneous expenses” has the lowest mean of

3.99 and verbal interpretation of “Often”. Miscellaneous expense has a general

mean of 4.10 and verbal interpretation of “Often”.

The data above implies that the respondents have successfully behaved

in spending their money in miscellaneous expenses. They have properly allocate

their money and use it in the most mindful way in order to spend it on

miscellaneous expenses accordingly.

Table 10
Summary of Mean and Verbal Interpretation on the Spending Behavior of
Grade 12 ABM students in San Jose Litex Senior High School
 Spending Behavior Mean Verbal
Interpretation
Basic Necessities 4.23 Often
Leisure Activities 4.07 Often
Miscellaneous Expense 4.10 Often
Grand Mean 4.13 Often

It can be gleaned from the table 10 that the respondents often spend their

money smartly in different expenses grouped into basic necessities, leisure

activities and miscellaneous expense. It implies that the respondents might avoid

having financial problems and difficulties if they spend their money in the most

desirable behavior.

Significant Relationship between Financial Literacy and Spending Behavior

of Grade 12 ABM student in San Jose Litex Senior High School

Table 11
Significant Relationship between Financial Literacy and Spending Behavior
of Grade 12 ABM students in San Jose Litex Senior High School
Tabular
Variable Computed DF Computed T Value Decision Interpretation
R Value T Value (0.05,
173 df)

Financial
Literacy
0.669 173 11.835 1.974 Reject Ho Significant
Spending
Behavior
 It can be seen from the Table 11 that the computed t-value of 11.835 is

greater than the tabular t value of 1.974 which led to the rejection of the null

hypothesis. Therefore, at 0.05 level of significance and 173 degree of freedom, it

can be concluded that there is a significant relationship between financial literacy

and spending behavior of Grade 12 ABM students in San Jose Litex Senior High

School.

High financial literacy brings positive impact on individual’s ability that

relate to finance in terms of increasing savings, making purchasing decision

correctly, having proper investing, debt and credit management as well as

provide understanding of the real economic situation and his or her financial

position reasonably.

This implies that the financial literacy has a direct relationship with

spending behavior. As the people’s level of financial literacy increases, they will

make most desirable behavior in spending and avoid having financial difficulties.

Thus, financial literacy does give effects directly towards the consumer’s

spending behavior.
 CHAPTER 5

SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

This chapter presents the summary of the research work undertaken, the

conclusions drawn and the recommendation made as an outgrowth of the study.

The study is all about the relationship of financial literacy and spending behavior

of Grade 12 ABM students in San Jose Litex Senior High School.

Summary of Findings

Based on the results, the relevant findings are the following:

1. Male respondents have a frequency of 36 or 20.57% of the total

population while female respondents have a frequency of 139 or 79.43% of the

total population.

In terms of weekly allowance, 37 or 21.14% of the population have an

allowance worth of Php 200 and below. 41 or 23.43% have an allowance of Php

201 – 30. Php 301 – 400 have a frequency of 35 or 20% of the population. And

lastly, 62 or 35.43% of the population have an allowance of Php 401 – above.

2. Financial literacy in terms of savings is often done by the respondents with a

general weighted mean of 3.67.

The level of financial literacy in terms of managing debt has a general

weighted mean of 4.28 which means it used often.

Financial literacy in terms of budgeting is used often by the respondents

with general weighted mean of 4.11

Overall, level of Financial Literacy is highly used with an overall mean of

4.02 and which is often used by the respondents.

3. Spending behavior of the respondents in terms of basic necessities has a

general weighted mean of 4.23 which means frequently done by the students.

Spending behavior in terms of leisure activities has a general weighted

mean of 4.07 which means that respondents frequently do it.

Spending behavior in terms of miscellaneous expense has a general

weighted mean of 4.10 which means that the respondents often do well in

spending money on miscellaneous expenses,

Overall, spending behavior of the respondents has an overall mean of

4.13 which means respondents often behaved well in spending their money.

4. There is a significant relationship between financial literacy and spending

behavior of Grade 12 ABM students in San Jose Litex Senior High School as

shown in the computed value of Pearson-r. The computed T-value of 11.835 is

greater than the tabular T-value of 1.974 which led to the rejection of the null

hypothesis.

Conclusion

Based on the findings of the study, the following conclusions have been

drawn:

1. Based on the survey’s findings, there are more female respondents than

male respondents. The researchers conclude that female are more approachable

than male respondents.

There are a lot of respondents who have an allowance of Php 401 and

above and the researchers conclude that there are a lot of students who have a

high level of financial capability.

2. The researchers conclude that the respondents have high level of financial

literacy because they have the abilities to properly save money, manage their

debt and budget their allowance.

3. Researchers conclude that the respondents behaved well in spending

their money in terms of basic necessities, leisure activities and miscellaneous

expenses. They might avoid having financial problems and difficulties if they

spend their money in the most desirable behavior.

4. Researchers conclude that there is a significant relationship between

financial literacy and spending behavior of Grade 12 ABM students in San Jose

Litex Senior High School. Financial literacy has a direct relationship with
spending behavior because the higher the level of financial literacy, the

respondents will make desirable behavior in spending and will avoid having

financial difficulties.

Recommendation

Based on the results of the study, the following recommendation has been

drawn:

1. Students should do better in saving money, managing their debt and

budgeting their allowance in order to make right decisions in spending their

money. Through this, they might avoid having any financial problems.

2. The school administration can conduct seminars regarding to the

development of financial literacy of the students in able for them to decide better

in allocating their money on different expenses.

3. Department of Education (DepEd) should implement programs that will

teach students the importance of being financially literate in order to encourage

students to handle their finances well and behave in the best way possible.